Within hours of launching the new Rs 500 notes on Sunday, the government increased the daily limit of withdrawal from ATMs from Rs 2000 to Rs 2500 and exchange limit from Rs 4,000 to Rs 4,500. Prime Minister Narendra Modi held a meeting to review the withdrawal of Rs. 500 and Rs. 1000 notes that was announced on Tuesday in a bid to root out black money. Union minister Arun Jaitley and the Deputy Governor of the Reserve Bank of India attended the meeting.
Here are the latest developments:
The finance ministry has asked the banks to remove the daily withdrawal limit of Rs 10,000 and increase the weekly withdrawal limit of Rs 20,000 to Rs 24,000, so that the entire amount can be withdrawn at one time by cheque. The banks have also been advised to make arrangements for separate queues for senior citizens and people with disabilities.
After Sunday's late night cabinet meeting - headed by PM Modi - the limit for exempted transactions was extended till November 24 midnight. Old Rs 500 and 1,000 notes will be accepted at government hospitals, petrol pumps and toll booths till November 24, Economic Affairs Secretary Shaktikanta Das said.
PM Modi on Sunday said the nation had elected him to fight corruption and he was ready to do even though he faced a threat to his life. "I know the forces up against me, they may not let me live... they may ruin me because their loot of 70 years is in trouble, but am prepared," he said at a function in Goa.
The Congress said PM Modi had insulted the people who are standing in queues. "Wage earners, farmers, weavers, construction workers... PM has said all these millions of Indians are scamsters. The PM should give up theatrics and think hard how to improve the country's direction," said party spokesperson Anand Sharma.
The Reserve Bank of India has urged people to not withdraw cash repeatedly and hoard it. Much to people's dismay, only 60 per cent of ATMs got currency feed five days after PM Modi announced the surprise scrapping of notes. Of the 2 lakh ATMs across the nation, 1.2 lakh are running but they are out of cash within a few hours.
Bigger crowds were witnessed outside banks and ATMs this morning since most people are off work; the rush was also, in part, due to banks being closed on Monday in some parts of the country. In Delhi, to manage anxious crowds, 3,400 paramilitary personnel and Delhi Police along with 200 quick reaction teams were deployed at ATMs and banks.
Delhi chief minister Arvind Kejriwal, who has criticised the government's move to ban the high denomination currency, told NDTV that those standing in long lines have no black money. The government, he said, had alerted its own people.
Bengal Chief Minister Mamata Banerjee called up arch rival CPM's Sitaram Yechury, asking him to join hands in the fight the governemnt's move and call on President Pranab Mukherjee together. According to sources, Mr Yechury said he would revert in a couple of days.
The nation's largest bank, the State Bank of India, got deposits worth Rs 75945 crore by Sunday evening.
The government had launched the new Rs 2000 notes last week. But neither that, nor the Rs 500 notes can be stacked in ATM machines due to a mismatch in tray size. "Recalibration of ATMs will be completed within two weeks," Union finance minister Arun Jaitley had said on Saturday.The government has asked people to exchange old 500 and 1,000 rupees notes by December 30.
